You're implying that financial markets are not international and that a huge crisis in one will not cause great strife in another?
The crisis was not 'American' in any way, it was international, as is finance. If one group monkeys with the system it causes issues everywhere (even worse if it is a concerted effort by multiple groups). This is especially true if 'trust' in the system is shot to hell which is what derivatives are built and traded upon.
I am not implying that financial markets are not international. Quite the contrary -- you'll note the parent comment referred to Iceland and the UK -- international.
The parent comment offered a simplifying model, that explained fairly clearly that the government Iceland treated classes of bank creditors(i.e. depositors) differently, and thus it was not fully correct to say either that they were bailed out, or they were let to fail. It all depended on where you sat.
Your comment offered no further elucidation, no further relevant information and strained the analogy past the breaking point.
Credit is built on trust (credo = I believe); derivatives are built on contracts.
Whoa Nelly! That analogy was strained past the breaking point long before I pointed the funny stick at it... That was more or less the point to be honest. Attempting to discuss international finance with a schoolyard analogy seems ridiculously oversimplified in the extreme. (also I like the name "Ameri" for a genderless parent. Sue me!) :)
It sounded like you were attempting to imply that there was ignorance of finance being international (or so it seemed... I could be wrong there) and I was pointing out that was not true.
Also contracts and trust are not opposing ideas nor do they address the same aspect of a thing. I'd venture to say that the entire market is (at least to some extent) based on 'trust' that it is not being heavily gamed and information is not being outright falsified.
The crisis was not 'American' in any way, it was international, as is finance. If one group monkeys with the system it causes issues everywhere (even worse if it is a concerted effort by multiple groups). This is especially true if 'trust' in the system is shot to hell which is what derivatives are built and traded upon.